Unexpected Return of $20M to ZKasino Wallet Sparks Hope After Alleged Crypto Scam
Summary:
ZKasino, a blockchain-based gambling project, reports a return of over $20 million worth of Ether three weeks after accusations of an exit scam. The funds returned represent roughly two-thirds of the total amount presumed lost in the scam. This news has ignited some optimism among the victims, despite continuous traces of illicit fund movements. In April, beyond the ZKasino case, $25.7 million was lost to scams and hacks, the lowest amount on record since 2021 according to intelligence firm CertiK.
In a surprising turn of events, over $20 million of bridged Ether (ETH) has been returned to the wallet of blockchain gambling project ZKasino. This unexpected return comes nearly three weeks after allegations of an exit scam were made against the platform's founders. On May 9, reports materialized that almost $21 million in wstETH (wrapped Lido staking ETH) had found its way back into the project's multisignature wallet. Those monitoring such funds speculated this unusual activity might signal an impending reimbursement to investors. Evidence of this was sourced from the $JAIL feed with Etherscan verifying the money trail. The returned funds represent approximately two-thirds of the total amount believed to have been misappropriated.
Initially launched on April 20, ZKasino offered an opportunity to those willing to bridge ETH to their platform with the promise of receiving ZKAS, their native token. Further, they vowed to return the bridged ETH to the customer. However, rather than honoring their promise, the creators shifted around $33 million worth of customers' bridged Ethereum to Lido Finance, a staking protocol, leading to widespread accusations of swindling funds.
These allegations intensified when Dutch authorities arrested a 26-year-old man on April 29, suspecting his involvement in the alleged scam. His seizure led to the confiscation of around $12.2 million in cryptocurrencies, property, and high-end vehicles. Some in the crypto world have linked the arrested individual to the project's founder, who goes by the alias "Derivatives Monke.”
Despite the arrest, there have still been movements of illicit funds on-chain, suggesting there may be other culprits yet to be apprehended. However, the recent return of funds to the project's wallet has surpassed victims' expectations, offering a glimmer of hope.
The month of April witnessed the loss of $25.7 million in cryptocurrency owing to scams and hacks, excluding the ZKasino matter. According to CertiK, an on-chain intelligence firm, this is the smallest amount lost since the commencement of data tracking in 2021.
Published At
5/9/2024 7:57:09 AM
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